A new district energy network which will provide heat and power in Gateshead has been launched.
The Gateshead Energy Centre will initially supply low carbon energy to around 350 local homes and businesses.
The 4MW combined heat and power (CHP) facility is however capable of generating enough electricity to power 5,000 homes in total.
According to Gateshead Council, it can capture waste heat created during the energy generation process and recycling it to keep buildings nearby warm.
Energy Minister Jesse Norman said: “This investment in local energy supplies is intended to deliver low carbon energy at competitive prices for local customers. It is a great example of the kind of local initiatives our new Industrial Strategy is looking to support.”